This Bulletin is intended for the use of status Indians who qualify under the Nova Scotia Indian Fuel Tax Exemption Program (NSIFTEP). It provides information for status Indians who wish to purchase gasoline or diesel oil exempt of tax from participating service stations located on Nova Scotia reserves. Please note that this exemption program does not apply to the harmonized sales tax.

The purpose of the NSIFTEP is to allow a fuel tax exemption to status Indians for purchases of gasoline and diesel oil on reserve at the time of purchase. The benefit of this program is that it will allow a status Indian registered under the NSIFTEP to use their Nova Scotia Driver’s Licence to obtain the exemption and the retailer to process it without the burden of processing detailed paper work at the time of sale. This will be possible because the retailer has a special electronic
point of sale system.

What are the Current Rates of Provincial Tax on Gasoline and Diesel Oil ?

Gasoline - 15.5 cents per litre
Diesel Oil - 15.4 cents per litre

Who is eligible for the Nova Scotia Indian Fuel Tax Exemption Program ?

An Indian, as defined in the Indian Act (Canada), who holds a valid Nova Scotia Driver’s Licence that is not under suspension.

Incorporated entities located on or off a reserve are not eligible for the NSIFTEP.

Procedure for Individuals to Establish Eligibility under this Program

The following is the procedure for status Indians to register for this Program:

1. Applicants are required to submit an application to their Band Registrar along with their Nova Scotia Driver’s Licence and their Certificate Of Indian Status Card. Application forms are available from Access Nova Scotia offices and at Indian Band Council offices or on the government website at: www.gov.ns.ca/snsmr/forms/

2. The Band Registrar is required to certify the application and forward it to Service Nova Scotia and Municipal Relations.

3. Upon approval, Service Nova Scotia and Municipal Relations will notify the applicant. After this approval, the driver’s Licence may be used to obtain the tax exemption.

4. The application requires the applicant to authorize:

∙ the Department of Service Nova Scotia and Municipal Relations to provide the information on the Nova Scotia Driver’s Licence to participating service stations who sell fuel on Indian reserves, for the purpose of administering exemptions from gasoline and diesel oil tax;

∙ the Department of Service Nova Scotia and Municipal Relations to provide the information on this form to the Department of Indian and Northern Affairs Canada for the purpose of confirming the Certificate of Indian Status Card information;

∙ the Department of Indian and Northern Affairs Canada to release the Certificate of Indian Status Card information to the Department of Service Nova Scotia and Municipal Relations; and

∙ the Department of Service Nova Scotia and Municipal Relations to use the Nova Driver’s Licence information for the purpose of administering exemptions from gasoline and diesel oil tax.

Use of Nova Scotia Driver’s Licence

The Nova Scotia Driver’s Licence will be used as proof of identity and as a mechanism for a status Indian to acquire tax exempt fuel from participating service stations located on Nova Scotia reserves.

If a Driver’s Licence has not been registered under the NSIFTEP or it has been cancelled, suspended or has expired, an exemption will not be triggered by the system. Further, a Driver’s Licence cannot be left with a retailer for future use and a person cannot use another person’s Driver’s Licence to make an exempt purchase.

Point of Sale Fuel Tax Exemption - How to Purchase Tax Exempt Fuel ?

Each time you wish to purchase tax exempt gasoline or diesel oil, you must present your Driver’s Licence to a participating service station at the beginning of the transaction. The service station attendant will verify the picture on the Licence and upon confirmation, swipe your Licence or key-in your Licence master number into the computer terminal. The information recorded on the Licence will automatically be checked against the information stored in the computer system. Upon validation of the Licence, the tax will be deducted from the sale.

Monthly Base Amount of Tax Exempt Gasoline and Diesel Oil

Status Indians registered under this program may purchase up to 400 litres (base amount) of gasoline or diesel oil per month exempt of tax or a combination of these products up to this quantity. In cases where persons registered under this exemption program require an increase in the monthly exemption base amount, they may submit an application to Service Nova Scotia and Municipal Relations. Application forms for this request are available from Access Nova Scotia offices, Band Council offices or on the government website at www.gov.ns.ca/snsmr/forms/

A request for an increased exemption must be renewed every three years.

In the case of a person who has reached the base amount before the end of a particular month, the point of sale system will not provide a tax exemption beyond the base amount. Therefore, in such a case, the person may submit a refund claim for the tax paid and if an increase to the base amount is required for the future, then an application may be filed as indicated above.

What if a Driver’s Licence is Rejected by the Point of Sale System ?

If a status Indian registered under the NSIFTEP presents their Nova Scotia Driver’s Licence and the point of sale system rejects the tax exemption, that person may contact Service Nova Scotia and Municipal Relations at (902) 424-3272 to determine the reason for the rejection.

Penalty for Violations of the Nova Scotia Indian Fuel Tax Exemption Program

Persons who participate in any activities that are not permitted under the NSIFTEP and the Revenue Act may be subject to a fine.

A person who sells gasoline or diesel oil to a vendor or a purchaser without holding a permit as required under the Revenue Act Regulations is liable, on summary conviction, to a fine of not less than $1,500.00 for a first offence; not less than $2,500.00 for a second offence; not less than $5,000.00 for a third offence, and a fine equal to two times the amount of tax that should have been collected, remitted or paid as determined by the Revenue Act; or

• to imprisonment for a term not exceeding one year; or

• to both fine and imprisonment.

Service Nova Scotia & Municipal Relations
Program Management and Corporate Services Division
1505 Barrington Street, 8th floor
Halifax , Nova Scotia
PO Box 755
Halifax, NS
B3J 2V4
Telephone: (902) 424- 6300 (Metro area); or
1-800-565-2336 (toll free in Nova Scotia)

Web site address: http://www.gov.ns.ca/snsmr/taxcomm/

"Tax Information Bulletins are published by the Program Management and Corporate Services Division for the sole purpose of providing information and to announce changes in the Revenue Act or Sales Tax Act and the regulations. Tax Information Bulletins do not replace the law found in the Act or regulations. Bulletins are provided for reference purposes only. For legislative approved text of provisions of the Revenue Act or Sales Tax Act and Regulations, see official volumes."